Solution-What the balance in the deferred income tax asset

What the balance in the deferred income tax asset

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Reference no: EM132868582

Question - MCB Ltd. has just completed its first year of operations on December 31, 20X1. Here is some information about this company:

Balance of the leased equipment on December 31, 20X1 = 180,000

Balance in the accumulated depreciation account pertaining the leased equipment on December 31, 20X1 = 27,000

Total amount of the lease obligation relating to the leased equipment on December 31, 20X1 = 126,000

Current income tax rate = 35%

Future income tax rate (enacted before the end of 20X1) = 30%

Required - What the balance in the deferred income tax asset or liability account on December 31, 20X1. If the amount relates to a liability please put brackets around it and if it relates to a deferred income tax asset, please DO NOT put brackets around it.

Reference no: EM132868582

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What the balance in the deferred income tax asset

Reference no: EM132868582

Reference no: EM132868582

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